FRANKFORT, Ky. (AP) -- State regulators have approved a rate increase for Kentucky-American Water Co. customers.
The Public Service Commission approved the adjustment Friday. The move will increase Kentucky-American's annual revenue by $6.9 million, a little more than half the amount the company sought.
Average residential customer bills will increase from $35.40 to $38.95 for 5,000 gallons a month, an increase of $3.55, or about 10 percent.
Kentucky-American wanted to increase revenue by $12.3 million annually, which would have increased the average monthly bill to $41.23, about a 16.5 percent hike.
The company said in asking for the increase that it is needed to recover the cost of capital improvements made since its last rate case in 2010.
The water company serves about 124,300 customers in 10 central Kentucky counties.
The state has ordered Kentucky-American to refund their customers the difference in the hike plus interest on the amount paid.